①Guangzhou Iron & Steel Gas Deng Tao said that in 2024, thanks to the revitalized investment in electronic semiconductors, semiconductor display and chip customers are expected to gradually plan for additional production capacity investment, which is expected to drive the demand for electronic bulk gases; ②The company's Q1 overall business gross margin was 31%, a year-on-year decrease of 11 percentage points. The Super-N series nitrogen production equipment has achieved the supply of ultra-high-purity electronic bulk gases to domestic leading integrated circuit customers.
"In 2024, thanks to the revival of investment in electronic semiconductors, semiconductor display and chip customers are expected to gradually plan for additional production capacity investment, which is expected to drive demand for bulk electronic gases." said Deng Tao, Chairman, CEO, and Chief Scientist of Guanggang Gas during the 2023 annual performance briefing for Q1 2024.
On August 15th, 2023, Guanggang Gas was officially listed on the STAR Market. Its main business income consists of bulk electronic gases and general industrial gases.
In terms of performance, Guanggang Gas' revenue in 2023 was RMB 1.835 billion, a YoY increase of 19.20%; net income attributable to the parent company was RMB 320 million, a YoY increase of 35.73%. In the first quarter of this year, Guanggang Gas increased revenue without increasing profits, with net income attributable to the parent company of RMB 67.1537 million, a YoY decrease of 10.18%. As for gross margin, the company's chief accountant (financial director), Shi Haiguang, stated that the overall business gross margin in Q1 of this year was 31%, a YoY decrease of 11 percentage points, mainly due to the impact of the price adjustment in the helium gas business. The gross margin stabilized in Q1 of this year compared to the fourth quarter of last year and has been showing signs of improvement since then.
Regarding customers, He Xin, the company's secretary to the board of directors, stated that the company's top five customers in 2023 were HuaXing Optoelectronics, Jinghe Integrated Circuit, Unionmed Healthcare, Autoliv, and Tongling Nonferrous Metals Group. Among the new customers were Xi'an Xinxi, Beijing Silex, as well as customers from Guangzhou, Shenzhen, and Dongguan, which are mainly concentrated in the field of electronic semiconductors.
"In 2023, the company obtained an additional 70,000 cubic meters of ultrapure nitrogen gas project; the utilization rate of the company's own factory capacity exceeded 90%, and the on-site gas production plant capacity utilization rate exceeded 70%, and will further release capacity utilization rate as customers ramp up," said Deng Tao, Chairman, CEO, and Chief Scientist.
"In terms of fundraising projects, the IPO fundraising project of Guanggang Gas is steadily pushing forward according to plan, and is expected to be completed successively and put into use in 2025-2026; the new project constructed using the raised funds of the company is also actively under construction," said He Xin, the company's secretary to the board of directors.
"The core of the electronic bulk gas industry is engineering and operational capabilities. Helium gas is an important variety of bulk electronic gases, so customers will pay attention to the ability of gas companies to provide a helium gas supply chain. The company plans to build a global helium gas supply chain with 100 liquid helium tanks by 2025 to ensure that it can enter the global Tier 1 ranks in the helium gas industry," according to Guanggang Gas.
"In April of this year, Guanggang Gas introduced several innovative products, including the Super-N 30K Pro nitrogen generator. At the conference, He Xin, the company's secretary to the board of directors, said that the company's independently developed Super-N series of ultrahigh-purity nitrogen production systems can stably produce and supply ppb-level ultra-pure nitrogen gas, which meets the stringent requirements of gas supply capacity for integrated circuit manufacturing and breaks through the technical barriers of foreign investment gas companies."
"At present, the company's Super-N series nitrogen generation systems have been supplying ultrahigh-purity bulk electronic gases to domestic leading integrated circuit customers, and the technology level is consistent with that of foreign investment gas companies. The Super-N series ultrahigh-purity nitrogen production system is mainly used in the company's on-site gas production project for electronic bulk gases, and belongs to the company's key core technology, which has not yet been sold externally," He Xin said.
"Concerning the overseas market, Deng Tao, Chairman, CEO, and Chief Scientist of Guanggang Gas, said that the company imports helium gas resources from the Middle East, North America, and other places through its own supply chain system and has established a global helium gas supply chain system. Along with the progressive improvement of the global helium gas supply chain system, the company will continue to strengthen its customer development and business layout capabilities, as well as expand its potential in the domestic and overseas markets."
"The mainstay of the electronic bulk gas industry is engineering and operational capabilities. Helium gas, a key variety of electronic bulk gases, has been drawing increased attention from customers, who seek a stable supply chain of such gases," said Guanggang Gas.